iGATE Beats Up on Analysts Yet Again

iGATE (NAS: IGTE) reported earnings today. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), iGATE met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
iGATE logged revenue of $268 million. The nine analysts polled by S&P Capital IQ predicted sales of $269 million. Sales were much higher than the prior-year quarter's $81 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.27. The nine earnings estimates compiled by S&P Capital IQ averaged $0.26 per share on the same basis. GAAP EPS of $0.11 for Q4 were 56% lower than the prior-year quarter's $0.25 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.3%, 240 basis points worse than the prior-year quarter. Operating margin was 19.2%, 430 basis points worse than the prior-year quarter. Net margin was 5.7%, 1,250 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $273 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $1.2 billion. The average EPS estimate is $1.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 207 members out of 213 rating the stock outperform, and seven members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give iGATE a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iGATE is outperform, with an average price target of $19.38.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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